T-Mobile isn't the budget underdog it used to be, and that's fine. The company has come a long way, standing shoulder-to-shoulder with AT&T and Verizon. The ascent means prices have risen for customers, and many of them aren't willing to put up with that.
Leaving any time now
The backlash isn't just about price hikes. It's about the fact that T-Mobile raised prices after promising to freeze them. That broken pledge pushed many users over the edge, even if T-Mobile remains cheaper than AT&T and Verizon. Besides, T-Mobile's revenue is forecast to receive a meagre 0.1% to 0.3% lift from the change, so it isn't quite the money grab it has been painted to be.
Regardless, for customers, it means bills that averaged $50 have shot up to as much as $300. We asked our readers how they handle carrier rate hikes, and the results skewed toward one sentiment.
Of the 622 respondents, 293 (47%) said they leave. 237 (38%) vent their frustration but ultimately stick with their carrier. The remaining 92 (15%) say they'll walk on the next strike.
How do you handle carrier price hikes?
Not just empty threats
Online outrage rarely turns into a mass exodus. However, if frustration has been building up for a long time, customers will leave in droves, which is what happened with Verizon last year.
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T-Mobile announced the forced migration toward the very end of the second quarter. Despite that, postpaid churn increased compared with last year. While the increase was just 0.07%, AT&T and Verizon both reported lower churn rates during the same period. This means fewer AT&T and Verizon customers left than T-Mobile subscribers.
A long time coming
For years, T-Mobile has avoided the fallout from its decisions. However, a steady trickle of direct and indirect hikes and other unwelcome decisions have compelled customers to consider alternatives.
T-Mobile has stopped reporting postpaid additions, which is a sign that the growth story may have hit a wall.
The network advantage
T-Mobile outshone customers in a couple of recent tests. | Image by Ookla
By leveraging wider spectrum capacity, integrating C-band assets, deploying UScellular assets, and shifting the vast majority of traffic to 5G while rivals still lean on 4G LTE, T-Mobile has built a network that's tough to match.
T-Mobile might be getting pricier, but it's working hard to prove it's worth it.
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Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.
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